Financial independence is a goal that every person wants to achieve in their lifetime, preferably early on so they can enjoy the fruits of their labor before they are too old. Nowadays, over half of millennials claim they are working paycheck-to-paycheck. So, just how can one be financially independent while they are still in their prime?
Get into franchising
Stagnant wages call for more of a branching out if and when one wants to achieve a more solid financial status earlier on. Working for yourself is becoming the go-to, and an easier way to do that is by jumping into a franchise.
Franchising gives you the opportunity to manage your own business without starting from scratch and having to completely jump in on your own. There are various industries out there — more than most people even realize — that can already be tapped to provide a vast market for any would-be business franchisee. This goes beyond the immediate idea of the food industry, as big markets like commercial cleaning offer franchise opportunities.
Looking into other markets beyond the food industry is good, because the demand can be more consistent. Since demand is not as reliant on fads and hype, an industry with a stable demand can help any business franchise. By picking a good franchise that can deliver consistent profit and a reliable return of investment, this can be a crucial move to achieving independence.
Cut out non-essentials
Studies show that a lot of millennials end up spending a major slice of their salary on non-essential items. This is because general costs are higher and attitudes on what to spend on, such as grocery and shopping list priorities, are shifting.
Although it is important to enjoy life’s offerings and set aside adequate time and resources for self-care and recreation, it is also wise to lessen general spending so that there is a bigger fund to rely on in the future.
Reportedly, millennials’ monthly spending is geared towards entertainment, luxury items, trips, and eating at restaurants. While these are perfectly acceptable ways to spend money, they are still indulgences that can be enjoyed without having to mess up one’s budget.
To be fair, this landscape of spending is also brought on by a more stressful financial pool, as debt rises and cashflow is slow to catch up. This is where investments come in — to prepare one for combat.
Take some risks
This may seem counterintuitive, but taking specific and strategic risks can work out for you in the long run. Start investing towards a retirement fund and delve into capital investments.
While you don’t want to accumulate stuff for the sake of it, making sound purchases can bring up your credit score, so you can start working toward bigger purchase goals like property and land.
Doing these purchases while you’re part of a younger demographic can make it easier to bounce back, if and when these risks don’t work out as planned. Of course, avoiding unwanted circumstances altogether falls down to making sound choices, so you better calculate your risks.
For instance, putting some money into a fresh company’s stock may be a risk, as it hasn’t hit the market yet, but choosing a company that has innovative products in popular sectors, like health and technology, can yield you a better chance of a fruitful payback.
With these tips, any individual with hopes of attaining financial independence can now attempt to strategize their way out of poverty.